Call to action against ULT’s pension plans

NASUWT – The Teachers' Union is today calling on the Government and the Pensions Regulator to take action against schools who are trying to encourage members to opt out of the Teachers' Pension Scheme in return for higher salaries.

At the TUC Congress in Brighton, NASUWT Senior Vice President Wayne Broom condemned attempts by some employers to encourage teachers to leave the Teachers' Pension Scheme.

In recent months however, United Learning Trust, which operates around 100 state-funded schools, is proposing to offer thousands of teachers the option of leaving the TPS in exchange for a higher salary.

Wayne Broom told Congress: “The significance of the United Learning proposals is that this is the largest multi-academy trust in England and is as such is directly maintained and funded by the government as a large public sector employer.

“The Teachers' Pension Scheme is mandatory for multi-academy trusts as a public body.

“This is the first time we have seen a significant public body which is an employer of teachers to propose to incentivise opt-outs from that scheme.

“It is vital that both the Government and the Pensions Regulator take action against public sector employers, which offer higher salaries to employees in return for opting out of public sector schemes.”

NASUWT General Secretary Dr Patrick Roach said: “Any attempt to seek to persuade or induce teachers to opt out of the TPS will be resisted strongly.

“United Learning's actions are not acceptable and we will not hesitate to do whatever it takes to protect our members.”

ENDS

Notes to Editors

A copy of Wayne Broom's speech is below

President, Congress

Wayne Broom SVP NASUWT - The Teachers Union seconding Motion 71.

This motion commits the TUC to opposing United Learning's proposals to introduce a defined contributions pension scheme for its teachers as an alternative to the defined benefits Teachers' Pension Scheme.

From September 2025 onwards, teachers who leave the Teachers' Pension Scheme will be able to receive a higher salary if they opt for an employer contribution into a DC money purchase scheme.

NASUWT has considerable experience of successfully opposing attacks on the Teachers' Pension Scheme in the independent school sector, where independent school employers voluntarily participate in the scheme as accepted bodies. We have taken industrial action in many cases to successfully prevent teachers from being removed from this scheme against their will or from having their salaries cut for remaining in the Teachers' Pension Scheme.

I pay tribute to those independent school teachers who have taken many days of industrial action and defended their pensions in their schools and colleges.   

The significance of the United Learning proposals is that this is the largest multi-academy trust in England and is as such is directly maintained and funded by the government as a large public sector employer.

The Teachers' Pension Scheme is mandatory for multi-academy trusts as a public body. This is the first time we have seen a significant public body which is an employer of teachers to propose to incentivise opt-outs from that scheme.     

NASUWT welcomes this motion from the NAHT making very clear the unacceptability of an employer asking employees to choose between a higher salary now and a public sector pension in the future. We consider this to be a crucial issue for all public sector pension schemes as it goes to the heart of the Government's 25 year guarantee of the reformed public service schemes, given in 2015. Key to this is that public service schemes will continue to be the pension provision for the public sector workforce.

Hence, NASUWT believes that it is vital that both the Government and the Pensions Regulator take action against public sector employers, which offer higher salaries to employees in return for opting out of public sector schemes.

It is not sufficient for public sector employers to lower pension contributions to the floor so that they comply with minimum auto-enrolment legislation for the workforce.

Our members deserve secure, defined benefits pensions as a reward for public service and our public sector employers must pay their part in enrolling current and future employees in our public sector schemes to ensure that this is the case, both now and in the future.                    

The NASUWT amendment commits the TUC to lobbying the Government and the Pensions Regulator to take appropriate action against any employer which induces or incentivises employees to leave public sector schemes.

Let's be clear: it is in the Treasury's interest, as well as the interests of our members, to maximise public sector worker, and public sector employer, participation in public service schemes, both now and in the future.

Employer and employee contributions into public service pension schemes are a vital component of the Exchequer's income. In addition, we believe that should be is a key function of the Pensions Regulator to enforce the Regulatory principle that the public service schemes are the pension schemes for public sector workers across the UK.

Congress, stand with us and defend public sector pensions.

Congress, I second.